Find out how much you need invested to reach Financial Independence, and how long it could take to get there.
The FIRE (Financial Independence, Retire Early) Number is the amount of investment savings you need before you can live off your portfolio indefinitely, without a paycheck. It answers the question: how much is enough?
FIRE Number = Annual Expenses ÷ Safe Withdrawal Rate. Most planners use a 4% withdrawal rate (the classic “25x rule”), meaning you need about 25 times your annual spending. A more conservative 3.5% withdrawal rate needs closer to 28.5 times your spending.
Someone who spends $40,000 a year and uses a 4% withdrawal rate needs a FIRE number of $1,000,000 ($40,000 ÷ 0.04). Starting from $50,000 in savings, contributing $1,500 a month, and earning 7% annually, they would reach that number in a little over 20 years.
Your FIRE number moves with your spending, not just your income — cutting expenses lowers the target as much as boosting savings raises your balance. Revisit the calculation yearly as your budget and returns change.
It's the total investment portfolio size needed to sustain your desired annual spending indefinitely through withdrawals, a core concept in the Financial Independence, Retire Early movement.
Commonly FIRE number = annual spending × 25, based on the "4% rule" which assumes a 4% annual withdrawal rate is sustainable long-term.
No — it's based on historical market data and comes with assumptions and risks (like poor early returns known as sequence-of-returns risk), so many planners treat it as a starting guideline, not a guarantee.